A guaranteed plan is a life insurance plan that offers pure protection, along with assured returns on maturity. But is it worth investing? Check here
Max life Insurance on Wednesday launched the ‘Smart Wealth Advantage Guarantee Plan’. This is a non-linked, non-participating individual life insurance savings plan that offers guaranteed returns, life insurance cover and tax benefits. The plan allows the customer to choose the date of guaranteed income payouts on special days like birthdays or marriage anniversaries.
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How the plan works?
The plan offers flexibility to ensure customisation as per the life stage and enhanced protection through a unique policy continuance benefit that ensures that policy becomes self-funded in case of the policyholders' demise, said
V Viswanand – Deputy Managing Director, Max Life Insurance while talking exclusively to CNBC-TV18.com.
"We have done extensive research with customers and sellers to identify key opportunity areas like flexibility, liquidity and the need for enhanced protection that are all addressed through this unique proposition. We have also enabled a unique benefit structure where a customer can choose to get guaranteed income starting the first-month post-premium payment," he said.
What exactly is a guaranteed plan?
A guaranteed plan is a life insurance plan that offers pure protection and assured maturity returns.
These plans are offered by the insurance companies in which policyholders need to pay a fixed premium on a monthly or yearly basis during the plan's tenure.
After the policy matures, they start receiving guaranteed returns on your investments.
Should guaranteed plans be a part of one's investment portfolio?
Having a balanced and diversified approach to savings and investment is very critical, said Viswanand.
ALSO READ | View: Self-insurance can be the most meaningful health cover for senior citizens in India
"The guaranteed plans from life insurance companies offer a unique opportunity to lock in attractive guarantees over long durations. This not only ensures long-term guaranteed wealth creation but also helps diversify your investment portfolio and act as a safety net against the volatility of stock markets," he said.
Additionally, these plans provide financial stability and offer convenient and flexible options to earn regular income.
In addition to the advantage of assured income or lump sum payouts, they also offer comprehensive financial protection against the risk of death, disease and disability, thus making them a holistic addition to one’s investment portfolio.
First Published: Nov 16, 2022 11:51 AM IST
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